The team may sit on the board of the foundations for the first year but that doesn't mean they can (or would want to) take all the coins.

Here's how I read it:

The foundations will have all their coins in published wallets - which makes it easy to see if, when and where coins go out.  

The reports will explain who the recipients are and what the coins are for - and follow the distrubution plan they published.
So I can't see how the team could steal from the foundations without anyone finding out.

Team, angel investors, exchanges, game companies, etc will also have their restricted coins in published accounts where it can be verified that they stay and abide by sale restrictions. So I can't see how they could dump more than what's come unrestricted without anyone finding out either.

I believe that they are trying to make this work so that the coins they have will go up in value - not try and steal more coins in a way that tanks the value. That's why they have sale restrictions in the first place - to calm the market that they can't dump. They didn't have to invent sale restrictions, but they did. Remember what happened when Jeb McCaleb said he was going to sell all his Ripple? They were completely unrestricted and he was an enormous whale and the price of XRP tanked, even though he never actually sold! Just on fear alone. That's why they added these restrictions, to avoid something like that.

I think the structure with the foundations, the distrubution plan and the restrictions is smart.